Can I Qualify to make an IRS Streamlined Offshore Disclosure?
If you are out of IRS Offshore compliance for not properly or timely filing tax returns and/or filing international reporting forms for your foreign assets, accounts, investments and income, you may be in luck. The IRS has developed special streamlined procedures to assist U.S. account holder taxpayers with safely getting into offshore compliance.
Streamlined Offshore Disclosure
A Streamlined Offshore Disclosure is informally referred to as the Streamlined Program, Streamlined Procedures, or Streamlined Amnesty. The streamlined process is not as complicated as OVDI, OVDP or post-OVDP — but it is still very complicated.
There are two types of IRS Streamlined Filing Procedures:
The programs are similar, but each program has its own set of specific filing and submission requirements.
A. Domestic Streamlined Procedures aka Streamlined Domestic Offshore Procedures
Streamlined Filing Compliance Procedures for US persons residing in the United States (or do not meet the technical “Foreign Resident Test”) is referred to as the Streamlined Domestic Offshore Procedures for U.S. Residents.
Typically, there are three (3) main eligibility requirements that a U.S. Taxpayer must meet in order to qualify and become eligible for the Streamlined Domestic Offshore Procedures.
The requirements include:
- Non-Willful Certification Statement using IRS Form 14654;
- Not Qualify as a Foreign Resident; and
- Filed Timely Tax Returns
B. Foreign Streamlined Procedures aka Streamlined Foreign Offshore Procedures
Streamlined Filing Compliance Procedures for US persons residing outside the United States is referred to as the Streamlined Foreign Offshore Procedures.
Streamlined Foreign Offshore Procedures (SFOP) are a highly cost-effective method of quickly getting you into IRS (Internal Revenue Service) or DOT (Department of Treasury) compliance before it is too late! It allows individuals to come into IRS Tax and Reporting Compliance, without having to pay any penalties.
The requirements include:
- Qualify as Non-Willful;
- Meet the 330-Day Foreign Residence Test/Non U.S. Person; and
- You do not have to have filed all prior year tax returns.
While the Streamlined Domestic and Streamlined Foreign each have their own specific requirements — both programs have one element in common.
The applicant must be non-willful.
Generally, if a person was unaware that there was a foreign account, foreign income, or foreign asset reporting requirement, the applicant may qualify as non-willful.
Unfortunately, there is no bright-line test, and a more complex “totality of the circumstances” analysis is required.
Non-Willful vs. Lower Standards of Willfulness
Willfulness does not mean intent.
There can be “lower” forms of willfulness, which do not require willful or intent — these additional willful standard are referred to as:
What Forms Must be Reported under Both Programs?
The following is a list of common forms which many people were never aware they had to report, but which the failure to report may lead to IRS fines and penalties:
- Form 3520
- Form 3520-A
- Form 5471
- Form 8621
- Form 8865
- Form 8938
Golding & Golding: About Our International Tax Law Firm
Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.
Each case is led by a Board-Certified Tax Law Specialist with 20 years of experience, and the entire matter (tax and legal) is handled by our team, in-house.
*Please beware of copycat tax and law firms misleading the public about their credentials and experience.
Less than 1% of Tax Attorneys Nationwide Are Certified Specialists
Our lead attorney is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.
Recent Case Highlights
- We represented a client in an 8-figure disclosure that spanned 7 countries.
- We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
- We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
- We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
- We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.
How to Hire Experienced Offshore Counsel?
Generally, experienced attorneys in this field will have the following credentials/experience:
- Board Certified Tax Law Specialist credential
- Master’s of Tax Law (LL.M.)
- Dually Licensed as an EA (Enrolled Agent) or CPA
- 20-years experience as a practicing attorney
- Extensive litigation, high-stakes audit and trial experience
Interested in Learning More about our Firm?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
We specialize in FBAR and FATCA. Contact our firm today for assistance with getting compliant.